We’ve all heard the term “totaled” used when describing the condition of a vehicle after a car accident. Perhaps you thought that it meant that the car has been reduced to a mangled heap of steel. In reality, a diagnosis of “totaled” can be applied for a number of reasons of varying degrees of damage.
Determining a Totaled Vehicle
The process of determining whether a vehicle can be declared a total loss involves the actual cash value of the automobile, the cost of repairs, and other factors. Many consumers are aware that a vehicle is typically considered a total loss if the actual cash value of the automobile is less than the costs of repair. This formula is not always reliable.
Each insurance company has its own criteria for determining when to total a vehicle. There is not one single source that all companies use to determine the actual cash value of an automobile, which adds another complication. Each state has different regulations as well.
What Happens If My Vehicle Is Totaled?
If the insurance company declares your vehicle a total loss, you will be paid the actual cash value of your vehicle. This means that whatever your automobile was worth prior to the accident. They will, of course, subtract your deductible from this amount. Many insurance companies will replace cars less than three months old with brand new vehicles, but this is something that varies from company to company.
For detailed information about your insurance company’s policy on totaling vehicles, contact their customer support. They are required to provide you with any information that you request.
Contact an Experience Car Accident Attorney
If you’ve been injured in a car accident, due to the negligence of another driver, don’t hesitate to contact us to speak to an experience attorney about your options.